As we continue our series, Financial Literacy for Kids, we focus on two challenging topics: financial goal setting and spending habits. These two money management skills play off of each other. Learning to set financial goals will help with what you need or want to buy.
Financial Goal Setting for Kids
Write It Down
“A goal not written down is only a wish!” This is true! The best way to get something done is to write it down. In the story, “Goob and the Bug-Collecting Kit”, Goob had a plan and he wrote it down. As he earned his money, he had planned ahead and was able to purchase everything he set out to buy. He even had enough leftover to share with his friend.
Teaching kids about goal setting and seeing them reach their goals, not only makes parents proud, think of the confidence you are instilling in your child when they achieve that goal!
Keep It Short-Term
The easiest way to teach your child about financial goal setting is to have a short-term goal. A short-term goal means it will only take 2-3 weeks to accomplish. Short-term goals can be used for things like a new game, toy or CD/DVD. Just by putting a part of their allowance aside the goal should be easy to make. Practice short-term goals a few times before moving onto long-term goals.
Going for a Long-Term Goals
Once your child has gotten the hang of short-term goals, transition into a long-term goal. Explain to them that this type of goal setting requires them to save over span of a few months, depending on the cost of the item that they want to save for.
Or they could just be saving for a rainy day or a need/want in the future. Though the long-term goal may seem like it will take forever, just remember the only way to save for it is to stick to a goal setting plan! Decide right away, how much you want to put away towards your goal. It can be 25%, 50%, 75% or all of it (on certain occasions). Before long, your child will have completed another great triumph!
Make financial literacy fun for your kiddo with this free printable! Teach them financial goal setting and watch them grow and hit their own savings goals.
Just Because You Have It, Doesn’t Mean You Have To Spend It
Does your child act like Jumper from the story “Goob and the Bug-Collection Kit“? This story is on point and easy for kids to relate to. I know it is exciting to have your own money, but just because you have it, doesn’t mean you have to spend it. If they still choose to spend it on cheap toys or candy, like Jumper, they may have nothing leftover do anything fun with. Hopefully, they have a great friend like Goob, who was able to invite Jumper to the movies because he had extra money left over.
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